Wages vs Invoice Calculator

Compare employee take-home pay against invoicing through different business structures

Assumptions

Set your location, household, and income

Country

State

Filing status

Dependents

Extra deductions

Annual salary (employee baseline)

Invoice revenue (business)

Business expenses

Owner salary (S/C corp)

Invoice paid by card (processing fees)

Business structures to compare

US LLC (sole prop)

State filing fee ~$50-$500; avg ~$130. Annual report/fees vary by state.

Formation ~$130 · Annual ~$100

US S Corporation

Formation ~$130-$800 plus S-election filing. Requires reasonable owner salary.

Formation ~$300 · Annual ~$150

US C Corporation

Formation ~$130-$800. 21% federal corp tax; dividends taxed again personally.

Formation ~$300 · Annual ~$150

United States · New York

Salary baseline $150,000 vs invoicing $150,000 (no card fees)

Employee (W-2)

Baseline

Net income left over (ongoing)

$104,031

Gross salary$150,000

Federal income tax-$25,247

State tax (NY)-$9,248

FICA (SS + Medicare)-$11,475

Child tax credit$0

Take-home pay$104,031

Total taxes & fees

Federal income tax-$25,247

State tax (NY)-$9,248

FICA (SS + Medicare)-$11,475

Child tax credit-$0

Total tax-$45,970

US LLC (sole prop)

Net income left over (ongoing)

$94,165

First year: $94,035 (after $130 formation)

Gross invoiced$150,000

Business expenses-$4,000

Net revenue$146,000

Self-employment tax-$20,629

Federal income tax-$21,812

State tax (NY)-$9,294

Child tax credit$0

Annual operating cost-$100

Net income (ongoing)$94,165

Total taxes & fees

Self-employment tax-$20,629

Federal income tax-$21,812

State tax (NY)-$9,294

Child tax credit-$0

Total tax-$51,735

US S Corporation

Best

Net income left over (ongoing)

$101,115

First year: $100,815 (after $300 formation)

Gross invoiced$150,000

Business expenses-$4,000

Net revenue$146,000

Owner salary$75,000

Distribution (no FICA)$71,000

FICA on salary-$11,475

Federal income tax-$24,287

State tax (NY)-$8,974

Child tax credit$0

Annual operating cost-$150

Net income (ongoing)$101,115

Total taxes & fees

FICA on $75,000 salary-$11,475

Federal income tax (pass-through)-$24,287

State tax (NY)-$8,974

Child tax credit-$0

Total tax-$44,736

US C Corporation

Net income left over (ongoing)

$94,985

First year: $94,685 (after $300 formation)

Gross invoiced$150,000

Business expenses-$4,000

Net revenue$146,000

Owner salary$75,000

Corp profit$71,000

Corporate tax (21%)-$14,910

After-tax corp profit$56,090

FICA on salary-$11,475

Federal income tax (salary)-$8,114

State tax (NY)-$7,952

Dividend tax (15%)-$12,256

Child tax credit$0

Annual operating cost-$150

Net income (ongoing)$94,985

Total taxes & fees

Corporate tax (21%)-$14,910

FICA on $75,000 salary-$11,475

Federal income tax (salary)-$8,114

State tax (NY)-$7,952

Dividend tax (15% qual.)-$12,256

Child tax credit-$0

Total tax-$50,865

Estimates only — not tax advice

Tax figures use 2025 federal brackets and approximate state/provincial rates. Actual taxes depend on full circumstances, credits, surtaxes, and a professional's review. Business formation and operating costs are researched averages and vary widely by state, province, and provider. Consult a licensed accountant or tax professional before deciding.